ESR Group AR2023 eBook EN

ESR Group Limited Annual Report 2023 189 Notes to the Consolidated Financial Statements 31 December 2023 18. INVESTMENT PROPERTIES (continued) The valuation of investment properties categorised within Level 2 of the fair value hierarchy is based on comparable market transactions for which the Group considers sales of similar properties that have been transacted in the open market. Below is a summary of the valuation techniques used and the key unobservable inputs to the valuation of investment properties categorised within Level 3 of the fair value hierarchy: Investment property details Valuation technique Key unobservable inputs Inter-relationship between key unobservable inputs and fair value measurement Logistics Income capitalisation Capitalisation rate: The estimated fair value varies inversely against capitalisation rate Facility, Data Centres, Land China: 5.40% to 7.00% (2022: 5.40% to 6.85%) Japan: 3.30% to 4.80% (2022: 3.80% to 5.10%) Hong Kong: N/A (2022: 3.00%) India: N/A (2022: 7.75%) Discounted cash flows Discount rate: The estimated fair value varies inversely against the discount rate China: 7.25% to 9.00% (2022: 7.25% to 9.00%) Japan: 3.10% to 4.70% (2022: 3.80% to 5.00%) Hong Kong: N/A (2022: 7.00%) India: 11.27% to 14.50% (2022: 9.83% to 13.85%) Terminal capitalisation rate: The estimated fair value varies inversely against the terminal capitalisation rate China: 4.25% to 6.25% (2022: 4.25% to 6.25%) Japan: 3.50% to 5.20% (2022: 3.90% to 5.50%) Hong Kong: N/A (2022: 3.00%) India: 7.50% (2022: 7.50%) CORPORATE GOVERNANCE FINANCIAL STATEMENTS STRATEGIC REPORTS

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